Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Digistar Bhd's Sloan Ratio for the quarter that ended in Mar. 2024 was -12.24%.
As of Mar. 2024, Digistar Bhd has a Sloan Ratio of -12.24%, indicating there is a warning stage of accrual build up.
Digistar Bhd Sloan Ratio % Historical Data
The historical data trend for Digistar Bhd's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Digistar Bhd's Sloan Ratio %
For the Conglomerates subindustry, Digistar Bhd's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digistar Bhd's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Digistar Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Digistar Bhd's Sloan Ratio % falls into.
Digistar Bhd Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Digistar Bhd's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Digistar Bhd's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.252 (Jun. 2023 ) + -1.95 (Sep. 2023 ) + -0.224 (Dec. 2023 ) + -1.379 (Mar. 2024 ) = RM-3.81 Mil.
Digistar Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 2.206 (Jun. 2023 ) + 12.403 (Sep. 2023 ) + 3.815 (Dec. 2023 ) + 1.294 (Mar. 2024 ) = RM19.72 Mil.
Digistar Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -7.366 (Jun. 2023 ) + 21.944 (Sep. 2023 ) + 2.701 (Dec. 2023 ) + -2.591 (Mar. 2024 ) = RM14.69 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Digistar Bhd (XKLS:0029) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2024, Digistar Bhd has a Sloan Ratio of -12.24%, indicating there is a warning stage of accrual build up.
Digistar Bhd Sloan Ratio % Related Terms
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Digistar Corp Bhd is an investment holding company. It operates through the following segments: System integration segment, Investment holding segment, Rental, and hotel segment, Concession segment, and Property development segment. The Systems Integration segment is involved in the design, supply, installation, and integration of information technology infrastructure, teleconferencing, local area networks, interactive media management systems, radio & television news automation, and other related electronic systems. The Concession segment includes concession arrangements between the Group and the Grantor for the privatization of the design, development, construction, and completion of the Facilities. It operates in a single geographical segment, which is Malaysia.
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